Newly Revised Air Cargo Insurance Clauses: Must Read

In response to the air cargo security protection needs of B2B companies and e-commerce sellers, the newly revised air cargo insurance clauses have been officially released. On January 1, 2025, the newly revised air cargo insurance clauses were officially released. This update aims to provide shippers with more comprehensive and detailed protection to ensure the safety and efficiency of goods during transportation.

Key updates to the new air cargo insurance clauses

1. Wider coverage

The new clauses clearly stipulate that insurance applies to goods during air transportation, including at airports, on aircraft, and at any stage during transportation. This means that no matter where the goods are, as long as they are insured, they can get corresponding protection.

2. Clearer insurance liability

The new clause clarifies that the insurance company is responsible for compensating for cargo losses caused by the following reasons:

Accidents (such as collisions, falls)

Natural disasters (such as fires, floods)

Theft

Loss or damage to cargo

In addition, the insurance amount should be determined based on the actual value of the cargo and shall not be less than 80% of the value of the cargo to ensure that the insurance compensation can truly reflect the actual loss of the cargo.

3. More comprehensive insurance period

The insurance period starts from the time the cargo leaves the place of shipment until the cargo arrives at the destination and is delivered to the consignee. This provides full protection for the owner and reduces the risks during transportation. In addition, if the consignee fails to pick up the goods in time, the termination period of insurance liability can be extended to a maximum of 15 days after the consignee receives the "Arrival Notice".

4. Clearer claims process

The new clause clarifies the claims procedure and dispute resolution mechanism. When the cargo is lost, the owner shall notify the insurance company within 24 hours after discovering the loss and provide relevant supporting materials. In terms of dispute resolution, the two parties shall first resolve the dispute through friendly negotiation; if the negotiation fails, it may be submitted to the arbitration institution where the insurance company is located for arbitration.

5. Reasonable determination of insurance amount

The insurance amount should be determined based on the actual value of the goods and shall not be less than 80% of the value of the goods to ensure that the insurance compensation can truly reflect the actual loss of the goods.

Importance of air transport insurance

Risk transfer: By purchasing air transport insurance, cargo owners and carriers can transfer the potential risk of economic compensation liability to the insurance company and reduce their own financial burden.

Guarantee the safety of goods: Air transport insurance provides protection for the safety of goods during transportation, enhancing the confidence of cargo owners and carriers. Protect goods from common risks such as accidents, theft and natural disasters, which may otherwise cause costly delays or losses.

Promote international trade: Air transport insurance provides stable insurance protection for international trade and contributes to the smooth progress of international trade.

Types of air cargo insurance

Air transport risk (ATR)

Cover damage or loss caused by accidents such as aircraft collisions, fires and weather-related events. Also includes partial losses (such as cargo damage) and general average (shared costs in the event of collective sacrifice during transportation).

Air transport all risks (ATAR)

Provide more extensive protection, including external risks such as theft, packaging damage and cargo contamination. This is ideal for businesses that ship valuable or sensitive items.

Claims Process: What You Should Know?

To ensure your claim is handled smoothly, it is important to follow the correct procedures:

Notification:

If an accident occurs, notify the insurance company immediately within 24 hours. This helps prevent delays in the claims process.

Documentation:

Submit the necessary documents, including a detailed accident report, cargo manifest, and shipping records. Accurate documentation speeds up the claim assessment.

Evaluation and Compensation:

The insurance company will assess the loss and determine the amount of compensation. In the event of a disagreement, the terms provide for the dispute to be resolved through negotiation or arbitration.

How to use the new terms to optimize logistics and insurance strategies?

As a B2B business or e-commerce seller, you can use the new terms to optimize your logistics and insurance strategies in the following ways:

1. Choose the right insurance plan

When choosing air cargo insurance, read the insurance terms carefully, understand the insurance liability and exemption clauses, and ensure that your rights and interests are fully protected.

2. Complete insurance formalities in a timely manner

It is recommended that you complete insurance formalities in a timely manner before the goods are shipped, and report the loss in a timely manner in case of loss of goods so that you can get compensation as soon as possible.

3. Optimize logistics process

Ensure the safety and efficiency of goods during transportation by working with professional logistics and fulfillment service providers. For example, ChinaDivision provides one-stop logistics solutions, including warehousing, packaging, transportation and insurance services, to help you optimize logistics processes and reduce logistics troubles.

Why choose ChinaDivision?

As a professional cargo transportation service provider, ChinaDivision is committed to providing high-quality logistics solutions for B2B companies and e-commerce sellers. We not only understand the latest insurance terms, but also provide you with a full range of cargo transportation services to reduce your logistics troubles.

Professional team: Our team has rich industry experience and can provide you with professional advice and services.

Efficient transportation: We ensure that your goods can reach their destination safely and on time.

Customer support: We provide 7*24 hours customer support to answer your questions at any time.

How can ChinaDivision help?

Professional guidance

Our logistics experts are familiar with air cargo insurance terminology and can help ensure that your goods are properly insured.

Efficient claims processing

If there is a problem during transportation, ChinaDivision will assist you with the claims process to ensure that you meet all requirements and submit the necessary documents in a timely manner.

End-to-End Fulfillment

From warehousing to transportation, Chinadivision provides comprehensive solutions for all your logistics needs, ensuring that your goods arrive at their destination on time and smoothly.

The newly revised air cargo insurance terms provide more comprehensive protection for B2B companies and e-commerce sellers, helping to improve the safety and reliability of cargo transportation. Choose Chinadivision as your logistics service provider, we will provide you with high-quality cargo transportation services and comprehensive insurance protection to ensure that your goods are safe and worry-free during air transportation. If you have any questions about the new terms, or need further logistics and insurance support, please feel free to contact Chinadivision. We will provide you with professional advice and services to ensure that your cargo transportation is worry-free.